Broker Agreement Template for Malaysia

A Broker Agreement creates a formal relationship between a broker and their client in Malaysia, spelling out how the broker will help buy, sell, or negotiate deals on the client's behalf. These contracts are common in real estate, securities trading, and commodity markets, where brokers must follow strict rules set by bodies like the Securities Commission Malaysia.

Under Malaysian law, the agreement must clearly state the broker's duties, commission rates, and scope of authority. It protects both parties by detailing important terms like payment schedules, confidentiality requirements, and the specific services covered. For regulated industries, the agreement needs to comply with specific guidelines, such as those in the Capital Markets and Services Act 2007.

Use a Broker Agreement before starting any business relationship where someone acts as your intermediary in Malaysian markets. This applies when hiring real estate agents to sell property, engaging securities brokers for stock trading, or working with commodity brokers for palm oil futures trading.

The agreement becomes essential when significant assets or investments are involved, especially in regulated sectors where the Securities Commission Malaysia oversees transactions. Having it in place before any deals protects your interests by clearly defining commission structures, service expectations, and legal obligations. It's particularly important when dealing with multiple properties, large investment portfolios, or complex trading strategies.

• Broker Contract Agreement: Standard comprehensive agreement for general brokerage services, covering commission structures and basic obligations
• Real Estate Agent Independent Contractor Agreement: Specifically for property agents, focusing on independent contractor status and property-specific duties
• Introducing Broker Agreement: Used when one broker refers clients to another, outlining referral fees and shared responsibilities
• Freight Agent Contract: Tailored for logistics brokers handling shipping and transportation arrangements

• Licensed Brokers: Registered professionals who need to outline their services, commissions, and obligations under Securities Commission Malaysia regulations
• Property Developers: Companies engaging real estate brokers to market and sell their developments through formal Broker Agreements
• Investment Firms: Organizations requiring securities brokers for trading activities in Malaysian capital markets
• Corporate Clients: Businesses seeking broker services for large-scale transactions or ongoing trading needs
• Legal Counsel: Lawyers who draft and review agreements to ensure compliance with Malaysian laws and protect client interests

• Broker Details: Gather license numbers, registration details with Securities Commission Malaysia, and service scope
• Commission Structure: Define exact rates, payment terms, and conditions for earning commissions
• Service Scope: List specific services, territories covered, and any exclusivity arrangements
• Legal Requirements: Check industry-specific regulations and compliance needs for your sector
• Duration Terms: Decide on agreement length, renewal options, and termination conditions
• Document Generation: Use our platform to create a legally-sound Broker Agreement that includes all mandatory elements

• Party Details: Full legal names, addresses, and broker license numbers from Securities Commission Malaysia
• Services Scope: Detailed description of brokerage services, territories, and any exclusivity provisions
• Commission Terms: Clear breakdown of rates, payment schedules, and conditions for commission earnings
• Compliance Statement: Reference to relevant Malaysian regulations and required industry standards
• Confidentiality: Protection of client information and trade secrets under Malaysian data laws
• Termination Rights: Conditions for ending the agreement and post-termination obligations
• Dispute Resolution: Malaysian jurisdiction choice and arbitration procedures

A Broker Agreement differs significantly from an Agency Agreement in several key aspects, though both involve representing another party's interests. Here are the main distinctions under Malaysian law:

• Scope of Authority: Brokers typically facilitate specific transactions or deals, while agents often have broader powers to act on behalf of their principal
• Regulatory Framework: Broker Agreements must comply with specific Securities Commission Malaysia requirements, while Agency Agreements follow general contract law principles
• Duration: Broker Agreements usually cover specific transactions or fixed periods, while Agency Agreements often establish ongoing relationships
• Compensation Structure: Brokers typically earn commission-based fees tied to successful transactions, while agents may receive fixed fees, commissions, or both
• Fiduciary Duties: Agents owe more comprehensive fiduciary duties to their principals, while brokers' obligations are typically limited to specific deal-related responsibilities